Wednesday

Gambling Under Regulated Vs Offshore Jurisdictions: Facts To Consider

The gambling industry has always been a playground for unscrupulous characters. As the Internet connects people in ways they never imagined. Others capitalized on it for their obscure advantage.

Laws looking to protect the vulnerable and prevent criminal activities like money laundering, scamming, and other forms of exploitation of the industry, face new challenges when it comes to enforcing individuals almost physically unreachable.

Gambling Under Regulated Vs Offshore Jurisdictions: Facts To Consider: eAskme
Gambling Under Regulated Vs Offshore Jurisdictions: Facts To Consider: eAskme
 

Other people are reading: Five Insane Online Casino Winnings

In this situation, gambling jurisdictions have the responsibility of enforcing the law to protect citizens when thriving in land-based gambling venues or their online extensions.

But like gambling, jurisdictions come as different as every card dealt and those holding them.

There are those looking to protect players at all cost (sometimes going too far). Some are simply looking for their share of their profits. Finally, a tiny group seeks a more holistic approach to keep fairness and fun for everyone.

While regulated and offshore jurisdiction offers the same approach -a certification for gambling operations-, how far they are willing to go in their duty, is what we are looking to discover, on this opportunity,

Jurisdictions

Jurisdiction by extent, are areas or territories where laws and regulations are applied under the supervision of an enforcement body. Those willing to operate under the designated conditions will require a license which is an issued certification of their competence and alignment with the standards that the enforcement body has established.

Licensees usually have 3 simple, yet incredibly hard to follow up conditions,

  • protecting customers

  • preventing money laundering

  • ensuring transparency and fairness of the game,

If they are not able to comply with them, it will derivate into fines and even license suspension for infractors.

Depending on how jurisdictions effectively regulate their licensees and provide fair treatment to customers, those holding their license will operate in other countries with lesser formal or strict regulations for online gambling.

For operators, licenses have the same effect as a passport where depending on how transparent and fair the issuer, more countries will allow access to their holders.

For customers, is similar to the corruption levels of impunity they can face on foreign land.

With all that said, gambling jurisdictions can be divided into two major groups.

Regulated Jurisdictions

Regulated jurisdictions earn their reputation for their strict enforcement. 

Before giving a license to any operator, regulated jurisdiction bodies such as the UK Gambling Commission or the Swedish Gambling Authority (Spelinspektionen) from Sweden, are responsible to deeply evaluate applicants’ background and competence to comply with the rules and are consequent doing it.

If these operators fail to honor the principles they abide by, penalties will have severe collaterals.

These autonomous bodies are common in first world countries where cultures are predisposed to gambling and even have present significant levels of problem gambling.

Licensed operators from these jurisdictions are obligated to provide all the necessary help for their customers regarding not only their finances but also their mental health.

For operators being under the flag of a regulated jurisdiction are obligated to:

  • Prevent vulnerable groups from accessing any online casino not on GamCare and

  • any gaming services that target problem gamblers.

  • Provide a stable and fair gaming platform with continuous evaluations for their correct

  • performance.

  • Promote gambling awareness

  • Have proved fund protection for their customers

  • Address responsible advertising to potential customers

  • Allow self-exclusions of players

  • Comply with any effort to minimize problem gambling risk when using their services,

  • even if this means readjusting the mechanics of their services.

  • Have complete transparency in their books

  • Collaborate with gambling and security authorities in the prevention of money

  • laundering and funding of terrorist groups.

  • Finance responsible gambling and protection programs.

While the list of duties can go extensively, the fact that gambling operators are complying
with every bullet point allows them to make their activities over a much larger market share
were customer can trust that:

  • Protection of their well being is a priority;

  • Partnering with GamStop and promoting this service to players;

  • Their accounts won't disappear because of operation cease

  • Any unusual activity in their accounts will be reported to their rightful owners

  • Fairness of the games are certified and will provide a balanced edge

  • Term and conditions are specific and clear.,

  • In case of dispute affected parties can address the Gaming authorities to meditate

  • and achieve a resolution.

Of course, players who choose to create an account must be wary about the conditions of the service.

This is the case of gubbling in sports betting (reduced betting limits) against players and authorities (still) can do anything because it is clearly stated.

Otherwise, you can be sure that your money and fun will be guaranteed from any operator licensed under a regulated jurisdiction flag.

Offshore Jurisdiction

In essence, offshore jurisdictions have the same framework as regulated jurisdiction and certify the competence of operators under what they consider standard regulations for the industry.

The difference against regulated jurisdiction is that offshores are laxer towards income taxation (tax haven) and regulations over licenses and operations, making them very attractive for their long-term benefits.

While the term offshore has a lawless connotation the truth can be anything more further. In the igaming industry, these are foreign operators that are addressing their services to a specific market under a regulated jurisdiction and are not obligated to abide by their procedures, unless access becomes heavily restricted.

While many offshore jurisdictions do have a gambling authority but the majority of cases they are focused on land-based operations.

In some extreme cases, the license is more of a legit pay-to-operate from governments with little to no regard for the protection of customers except for those who reside in the issuing country.

Back in the 1990s where online gambling was giving its first steps, many jurisdictions issued licenses to those with cash in hand, creating havoc on the igaming reputation and tarnishing offshore licenses.

Operators under offshore jurisdictions have the advantage of:

  • Having more taxes. Usually less than 10% of gross revenues or even a cap fee on earnings.

  • Licenses are more affordable in requirements and costs. Even some offshore jurisdictions offer a turnkey service that includes a license and business infrastructure bundle. Something very attractive compared to regulated jurisdictions where applicants need a specialized legal service to help them meet all the requirements.

  • Customer aware is less enforced.

Unfortunately, players looking for some better benefits or access to offshore gambling are
exposed to the following hazards,

  • Unstable operations: lag, or interruption of services

  • Higher fees, and or limits for withdrawals.

  • Terms and conditions inconsistency. Especially with initial bonuses

  • Delays or no response from customer service

  • Scams, identity theft, vulnerability exploitation.

  • Unrealistic odds masking rigged operations.

  • None resources to complain and address unlawful operators, leaving customers literally on their own.

Because of these risks, many of these licenses are restricted to just a handful of countries where gambling enforcement is not addressed. Fortunately, there are exceptions.

The Malta Gambling authority is an offshore gambling jurisdiction with lax taxation but strict customer
protection standards that ensure the transparency and fairness of applicants before allowing any of them to hold their endorsement on their land page.

Conclusion

With online gambling penetrating more and more in worldwide cultures, and thousands of operators advertising their services with juice bonuses and incredible games, customer awareness (and the underrated common sense) are a maxim to apply.

Making a bet, even the tiniest flutter is an act of commitment and to prevent us a greater headache in the future (especially when the stakes are higher) a simple yet, thoughtful research over the issuer of the license and the holder itself, is enough to make a decision when picking a provider to deposit our money and our trust.

If you still have any question, do share via comments.

If you find this article interesting, don’t forget to share it with your friends and family.

Why?

Because, Sharing is Caring!

You May Also like These;

Grow Instagram Audience